Let's say the unit was bought for $300k (including all associated costs) at the start of a financial year but depreciation of $10k a year has been claimed for the last 5 years (prime cost method). So the adjusted cost base at the start of this financial year is $250k.

Now, let's say I am selling the unit on December 31. Can I claim half a full year's depreciation in my income tax as an income deduction (ie $5k) and reduce this from the cost base when calculating my CGT?

I have a load of capital losses so it would be beneficial for me to be able to depreciate the asset as much as possible and maximise the capital gain (which will be absorbed by my carried forward losses).

Also, a second order question - can carried forward capital losses on shares be applied against capital gains on investment properties?

Many thanks!!!